Facebook, Inc (NASDAQ:FB) pops up as the second company worldwide when it comes to top performers in the online ad dollars. The company is unhappy about the IDFA change, which will probably hurt its Audience Network. Alphabet Inc (NASDAQ:GOOGL) tops the online ad dollars list, and Facebook fears that the change might favor Google’s business a great deal. Google’s operations are such that the company targets users during conversions.
Apple pushes for change
Apple Inc (NASDAQ:AAPL) pushed for the new change, outlining the essence of allowing users to decide whether or not they want to opt into the IDFA tracking. However, the company will allow the various advertisers and app makers to engage in data collection activities. The business intends to serve the app makers with its SKAdNetwork API for data collection, though they won’t enjoy explicit user permission.
Facebook has, over the years, operated an Audience Network that focuses on the provision of advertisements to wide-ranging apps. The business checks out the IDFA numbers on its quest to identify the most appropriate ads for the different users using data on its platform.
New change gives users freedom
The latest change is such that it gives users leeway to opt-out of IDFA tracking. Something that ends up complicating matters for Facebook. Experts say that the shift will render Facebook’s personalization efforts outside its apps useless. Eventually, Facebook’s business will be hurt, according to sources.
The company admits that a significant amount of its revenue comes from advertisements. A person familiar with the changes discloses that Facebook’s Audience Network contributes something minimal, placing the figure at about 10%.
Away from the views through conversions, the company fears that it might lose important data regarding its iPhone-based users in those instances they visit the outside apps. Facebook has, over the past, had an easy time with data collection, something that has been made possible by its wide-ranging apps. The apps include Facebook, WhatsApp, Messenger, Instagram, and others.
Facebook is quite pleased about its data collection but still decries the change. According to the business, the additional data helps a lot when it gets to the enhancement of its algorithms’ working mechanisms. It points out targeting as one important area.